Total Quality Management

Transcription

1 Total Quality Management The way of managing organization to achieve excellence Total everything Quality degree of excellence Management art, act or way of organizing, controlling, planning, directing to achieve certain goals Definition of TQM (BS 4778:1991) A management philosophy embracing all activities through which the needs and expectations of the CUSTOMER and COMMUNITY, and the objectives of the organization are satisfied in the most efficient and cost effective manner by maximising the potential of ALL employees in a continuing drive for improvement. Intro_tqm shari.fkm.utm 1

2 TQM Requires cultural change prevention not detection, pro-active versus fire-fighting, life-cycle costs not price, etc. Many companies will not start this transformation unless faced with disaster/problems or forced by customers Effect of TQM (Quality Improvement) Improve Quality (Product/Service) Increase Productivity (less rejects, faster job) Lower Costs and Higher Profit Business Growth, Competitive, Jobs, Investment Intro_tqm shari.fkm.utm 2

3 TQM Principles and Practices Tools and Techniques Leadership Quantitative Non Quantitative Customer Satisfaction Employee Improvement SPC ISO 9000 Acceptance Sampling Reliability ISO Benchmarking Continuous Improvement Experimental Design Total Productive Supplier Partnership FMEA Management Tools Performance Measures QFD Concurrent Engineering Scope of the TQM activity Intro_tqm shari.fkm.utm 3

4 TQM Six Basic Concepts 1. Leadership 2. Customer Satisfaction 3. Employee Involvement 4. Continuous Process Improvement 5. Supplier Partnership 6. Performance Measures (All these present an excellent way to run a business) Intro_tqm shari.fkm.utm 4

5 Criteria 1 Leadership Top management must realize importance of quality Quality is responsibility of everybody, but ultimate responsibility is CEO Involvement and commitment to CQI Quality excellence becomes part of business strategy Lead in the implementation process Intro_tqm shari.fkm.utm 5

6 Characteristics of Successful Leaders 1. Give attention to external and internal customers 2. Empower, not control subordinates. Provide resources, training, and work environment to help them do their jobs 3. Emphasize improvement rather than maintenance 4. Emphasize prevention 5. Encourage collaboration rather than competition 6. Train and coach, not direct and supervise 7. Learn from problems opportunity for improvement 8. Continually try to improve communications 9. Continually demonstrate commitment to quality 10. Choose suppliers on the basis of quality, not price 11. Establish organisational systems that supports quality efforts Intro_tqm shari.fkm.utm 6

7 Implementation Process Must begin from top management Cannot be delegated (lack of involvement cited as principle reason for failure) Top/senior management must be educated on TQM philosophy and concepts Visits to TQM companies, read books, attend seminars Need a roadmap/framework for implementation consider timing (any crisis) Formation of Quality Council policies, strategies, programmes Intro_tqm shari.fkm.utm 7

8 Criteria 2 Customer Satisfaction Customer is always right in Japan customer is King Customer expectations constantly changing 10 years ago acceptable, now not any more! Delighting customers (Kano Model) Satisfaction is a function of total experience with organization Need to continually examine the quality systems and practices to be responsive to ever changing needs, requirements and expectations Retain and Win new customers Intro_tqm shari.fkm.utm 8

9 Issues for customer satisfaction Checklist for both internal and external customers 1. Who are my customers? 2. What do they need? 3. What are their measures and expectations? 4. Does my product/service exceed their expectations? 5. How do I satisfy their needs? 6. What corrective action is necessary? Customer Feedback Discover customer dissatisfaction Discover priorities of quality, price, delivery Compare performance with competitors Identify customer s needs Determine opportunities for improvement Intro_tqm shari.fkm.utm 9

10 Customer Feedback Tools/Method Warranty cards/questionnaire Telephone/Mail Surveys Focus Groups Customer Complaints Customer Satisfaction Index Good experience are told to 6 people while bad experience are repeated to 15 people Intro_tqm shari.fkm.utm 10

11 Criteria 3 Employee Involvement People most important resource/asset Quality comes from people Deming 15% operator errors, 85% management system Project teams Quality Control Circles (QCC), QIT Education and training life long, continuous both knowledge and skills Suggestion schemes; Kaizen, 5S teams Motivational programmes, incentive schemes Conducive work culture, right attitude, commitment Intro_tqm shari.fkm.utm 11

12 Criteria 4 Continuous Process Improvement View all work as process production and business Process purchasing, design, invoicing, etc. Inputs PROCESS outputs Process improvement increased customer satisfaction Improvement 5 ways; Reduce resources, Reduce errors, Meet expectations of downstream customers, Make process safer, make process more satisfying to the person doing Problem Solving Method 1. Identify the opportunity (for improvement) 2. Analyze the current process 3. Develop the optimal solution(s) 4. Implement changes 5. Study the results 6. Standardize the solution 7. Plan for the future Intro_tqm shari.fkm.utm 12

13 Identify the opportunity (for improvement) Phase 1 Identify problems Use Pareto Analysis external & internal failures, returns Phase 2 Form a team (same function of multifunctional) Phase 3 Define scope of problem (Paint process data collected foe a week showed high 30% runs defect) Analyze the current process Understand the current process, how it is performed Develop process flow diagram Define target performance Collect data, information Determine causes not solution (use cause and effect diagram) Root cause if possible Intro_tqm shari.fkm.utm 13

14 Develop the optimal solution(s) To establish solutions Recommended optimal solution to improve process Create new process, combine different process, modify existing process Creativity (rubber pad adhesive, door trim) Brainstorming, Delphi, Nominal Group Technique Evaluate and testing of ideas/possible solutions Implement changes To prepare implementation plan, obtain approval, conduct process improvements, study results Why is it done? How, When, Who, When it will be done? Intro_tqm shari.fkm.utm 14

15 Study the results/standardize the solution/plan for the future Measure and evaluate results of changes Standardize solution certify process, operator, done? Positron Control Wave Soldering Process What Specs Who How Where When A 880 Flux g Lab technician Specific gravity Lab Daily Next project/problem areas Intro_tqm shari.fkm.utm 15

16 Criteria 5 Supplier Partnership 40% prod. Cost comes from purchased materials, therefore supplier Quality Management important Substantial portion quality problems from suppliers Need partnership to achieve quality improvement long-term purchase contract Supplier Management activities Define product/program requirements; 1. Evaluate potential and select the best suppliers 2. Conduct joint quality planning and execution 3. Require statistical evidence of quality 4. Certify suppliers, e.g. ISO 900, Ford Q1 5. Develop and apply Supplier Quality Ratings Defects/Percent non-conforming Price and Quality costs Delivery and Service Intro_tqm shari.fkm.utm 16

17 Criteria 6 Performance Measures Managing by fact rather than gut feelings Effective management requires measuring Use a baseline, to identify potential projects, to asses results from improvement E.g. Production measures defects per million, inventory turns, on-time delivery Service billing errors, sales, activity times Customer Satisfaction Methods for measuring Cost of poor quality Internal failure External failure Prevention costs Appraisal costs Intro_tqm shari.fkm.utm 17

18 Performance Measures (continue) Award Models (MBNQA, EFQM, PMQA) Awards criteria Scoring Benchmarking grade to competitors, or best practice Statistical measures control charts, Cpk Certifications ISO 9000:2000 Quality Mgt System ISO Environmental Mgt System, Underwriters Lab (UL), GMP QS 9000, ISO/TS Intro_tqm shari.fkm.utm 18

19 Deming s 14 Points for Management 1. Create constancy of purpose towards improvement of product and service with aim to be competitive, stay in business and provide jobs. 2. Adopt a new philosophy new economic age, learn responsibilities and take on leadership for future change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into product in the first palace. 4. End the practice of awarding business on the basis of price, instead, minimize total costs. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, thus decreasing costs. 6. Institute training on the job 7. Institute leadership, supervision to help do a better job. 8. Drive out fear, everyone can work effectively for company. 9. Breakdown barriers between departments. Work as teams to foresee production problems. 10. Eliminate slogans, exhortations, and targets for workforce. 11. Eliminate numerical quotas on the workforce. 12. Remove barriers that rob people pride of workmanship. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody to work to accomplish the transformation. Intro_tqm shari.fkm.utm 19